For the Quarter Ending June 2023
North America
Coconut Oil prices in North America during the 2nd quarter of 2023 followed the trend of the European market. The price of coconut oil decreased from the first quarter of 2023 to the second quarter of 2023. This implies that the market sentiment for coconut oil will continue to be weak. The reason for the price decrease was the high Coconut Oil inventories in North America at the time, the ample supply, and the Russian suspension of trade in black sea grain. Additionally, a decrease in exports from exporting countries further supported the downward price trend of Coconut oil in the North American region. In addition, crude oil prices decreased sharply, and Russian edible oil and grain offers decreased significantly. This had a significant negative impact on the prices of corn, edible oils, and other grains. Higher interest rates and higher energy prices also impacted import activity as the production in exporting countries decreased significantly. Furthermore, disrupted climatic conditions across the North American region further affected the trade activity from exporting nations, primarily the Philippines, Indonesia, etc.
Asia Pacific
Coconut Oil prices across the Asia-Pacific region, primarily in India, Indonesia, and the Philippines, showed a downward trend. Overall, the prices of coconut oil dropped in the second quarter of 2023 by more than 3 percent in the Indonesian market. Overall, coconut oil prices decreased in the second quarter due to weak demand, weakened vegetable oil markets, and falling crude oil prices, according to analysts. In addition, Indonesia reported a smaller-than-anticipated trade surplus for May, though exports and imports declined compared to the previous month. Additionally, in the Philippines market also, the prices of Coconut oil dropped consistently throughout the second quarter because of increased supply with higher stockpiles, putting further downward pressure on its prices. With the end of June, the prices for Coconut Oil prices in India were assisted at USD 1155/MT FOB Quezon with a consistent diminishing trend in the Philippines. Coconut oil prices decreased consistently throughout the second quarter of 2023 across the Indian Market due to persistent low regional and worldwide demand. Slower demand and higher inventory levels have kept the price trend of coconut oil on the low side. Buyers and traders also withdrew their future quotations from the market due to a persistent decline in inquiries. This has further impacted the overall market sentiment of coconut oil until June in the domestic and overseas markets. The India Manufacturing PMI for June 2023 was 57.8, which is lower than May's 31-month peak of 59.7, and below the market forecast of 59.0.
Europe
The Coconut Oil market ended the second quarter of 2023 on a bearish note, with prices continuing to their downward trend across the European market. European prices of coconut oil continue to fall, across the domestic market, due to subdued demand, weaker trade activity, and higher stockpiles with the merchants. In particular, throughout Q2 2023, prices of coconut oil followed the market trend in the USA and witnessed a consistent declining trend. One of the reasons for the drop in the prices of coconut oil in Europe is that the market has sufficient reserves, and there was low purchasing sentiment. However, the suppliers were reluctant to place newer quotations and focused on destocking their previous stockpiles. In addition, a decrease in buying activity due to unfavorable weather conditions, the ongoing Labour crisis, and the increasing energy prices have decreased the imports of Coconut Oil across the European market, further keeping the prices moving downward.
For the Quarter Ending March 2023
North America
In North America, the price of Coconut Oil varied in the first quarter of 2023 as a result of fluctuating market dynamism from downstream businesses, including the food and cosmetics sectors. The cost of other edible oils declined in the first half of Q1 2023 as a result of the moderate to low demand from the pharmaceutical and cosmetic industries. Food prices rose globally and in the USA, in particular, due to the invasion of the Russia-Ukraine conflict and supply interruptions. As a result of the lesser supply coming from the main exporting countries to the USA, prices rose in the second half of Q1 of 2023. In the final month of the quarter, there were still sizeable stockpiles in the domestic US market to meet consumer demand with the supplies despite an increase in demand.
Asia Pacific
In the first quarter of 2023, the price of Coconut Oil fluctuated across the Asia-Pacific region, particularly in Indonesia and India, due to unpredictably shifting market dynamics. As Indonesia only exported a small amount of palm oil in Q1 2023, the price of other edible oils increased in the first half of the quarter. Coconut Oil has become more widely used as an alternative in the domestic market as the cost of other edible oils has decreased. Due to low demand and significant market stocks, the price continued to decline in the second half of Q1 2023. The final month of the quarter saw a decline in pricing as a result of stable demand from end-user industries and domestic households. Towards the end of Q1 2023, the price of Coconut Oil was recorded to be USD 1876.05/MT for Ex-Kuttoor (India) in March 2023.
Europe
As a result of easier access to ports, notably those on the Black Sea, Coconut Oil prices in Europe fluctuated throughout the first quarter of 2023. Due to high production and low demand, the price of all edible oils, including Coconut Oil, fell in the first part of Q1 2023. Massive acres of farmland and the coconut plant's high productivity benefited from the climate. Prices rose in the second month of the quarter as a result of a decline in stocks with the nearby dealers. In the second half of Q1 of 2023, prices of other edible oils in the nation increased, including those for Coconut Oil, as a result of the lifting of the limitation on the export of a certain amount of palm oil. Towards the end of Q1 2023, the price of Coconut Oil was recorded to be USD 1505/MT for CFR Rotterdam in March 2023.
In North America, the price of coconut oil fell in the fourth quarter of 2022 as a result of a decline in demand from downstream industries, including the food and cosmetics sectors. The moderate to low demand from the pharmaceutical and cosmetic industries resulted in a decrease in the price of other edible oils in the first half of Q4 of 2022. However, the invasion of the Russia-Ukraine conflict and global supply disruptions drove up food prices, particularly in the USA. Prices decreased in the second half of Q4 of 2022 as a result of the plentiful supply coming from the primary exporting nations to the USA. Despite a decline in demand, there were still sizable stockpiles on the domestic US market. It was possible to satisfy consumer demand with excess supplies.
Due to unpredictable market dynamics, the price of coconut oil varied throughout the fourth quarter of 2022 throughout the Asia-Pacific region, particularly in Indonesia and India. The first part of the quarter saw a decrease in the price of other edible oils as a result of Indonesia's heavy production of palm oil in Q4 2022. As other edible oils' prices have decreased, coconut oil has gained popularity as an alternative on the home market. In the second half of Q4 of 2022, the price kept dropping because of weak demand and huge market inventories. Due to a rise in demand from end-user industries and domestic households, prices were raised in the final month of the quarter.Towards the end of Q4 2022, the price of Coconut Oil was recorded to be USD 1903/MT for Ex-Kuttoor (India) in December 2022.
Prices of Coconut Oil in Europe varied throughout the fourth quarter of 2022 as a result of greater access to ports, particularly those on the Black Sea. All edible oils' prices, including coconut oil, decreased in the first half of Q4 of 2022 as a result of high output and weak demand. The climate favoured enormous acres of cultivating grounds and the robust productivity of the coconut plant. Due to a drop in stocks with the local dealers, prices increased in the second month of the quarter. With the release of the restriction, the price of other edible oils in the country dropped, which led to Indonesia relaxing its restrictions on the export of palm oil in the second half of Q4 of 2022. Towards the end of Q4 2022, the price of Coconut Oil was recorded to be USD 1550/MT for CFR Rotterdam in December 2022.
